Item B: Opportunity Siting Update

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Financial Feasibility Case Studies The Naval Reserve site was also selected for a case study of financial feasibility for medium and medium-high density development. A subgroup of task team members and staff held a mini-charrette to develop two schematic site plans for the site. The intent was to test the suitability of the site for development at two different densities. Further, the development forms proposed in the two schemes allowed testing of both a less costly medium density building type and a more costly higher density building type. The intent of studying two densities and two development types was to seek generalizations that could inform options for opportunity sites in JWN and similar neighborhoods. The two schematic site plans are shown on pages 7 and 8 of the financial feasibility report (See Supplemental Attachment 4). The medium density plan at 20 dwelling units per acre describes a development with several two and three story apartment buildings, which include flats and townhouses. Buildings face the street and an interior drive as well as an internal open space. Parking was proposed to be located in grouped lots and under the townhouses. Based on their research, the consultant assumed construction costs similar to other recent garden-type apartment developments in the community. The higher density site plan, at a density of 50 dwelling units per acre, describes two six-story buildings similar to The Tate constructed along a new north-south street connecting 13th and 14th Avenues. The plan also includes four story stacked townhouses facing 13th and 14th Avenues, shared open space and grouped parking below and adjacent to the buildings. The quality of construction materials necessary to meet building code requirements for the six-story building dictated a higher cost construction and therefore a higher end development. Consultant Report and Findings Johnson-Gardner consultants studied both the market demand, above, and the financial feasibility of the schemes. Their report concluded that the site, located along a bus route, adjacent to a school, play fields, parkland, grocery store, a church and commercial services was well suited for family housing. They also concluded that the area did not provide the range and intensity of amenities, such as restaurants and shops, needed to attract a high-end demographic for the higher cost design. “Households that are seeking an urban experience associated with high-density development will want more amenities in the immediate area than is available at the subject site and many of the neighborhoods in Eugene. Sites close to the downtown core, within walking distance of restaurants, the Hult Center and other amenities have a better chance of attracting households looking for high- density development.” Johnson-Gardner analyzed the feasibility of each development scheme including multiple variables and potential incentives for the 20 dwelling unit per acre scheme. The consultant’s in- depth analysis of land, construction, and other development costs in relation to the expected income return on rents for the property demonstrated a considerable financial gap in all scenarios